Composite Index rebounded 7.42 points to 901.72 points. As indicated by A, KLCI is resisted by the 10 days Bollinger middle dynamic resistance line. Mean while, KLCI is now back to above the 900 psychological level. Nevertheless, KLCI is now forming a descending wedge chart pattern.

%K of Stochastic broke above the 30% level, suggesting that the short-term bearish sentiment for KLCI has ended. If we see the %D line crosses above the 30% level, it shall confirm the %K signal. (Study B)

At the same time, a bullish divergence signal is found on the MACD histogram. The divergence signal suggests that the KLCI is likely to continue it's technical rebound. However, since the histogram is a short-term signal, the technical rebound for KLCI shall be temporary. (Study C)

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